Global Dairy Trade auction records first increase in two months

Prices rose 3.2 per cent across the board in the latest GDT auction. File photo / Warren Buckland

Prices have exceeded expectations in the latest Global Dairy Trade auction, held overnight, with a 3.2 per cent rise across the board.

It is the first increase in two months, and a welcome one after the index tumbled 4.7 per cent two weeks ago.

Whole milk powder, which peaked in March 2022 at US$4757/MT, gained 1.0 per cent to an average of US$3089/MT.

Skim milk powder - Fonterra’s second-biggest reference product - led the upward charge with a 7.0 per cent gain, to an average of US$2776/MT.

All other products on offer followed the rising trajectory, with cheddar up 5.7 per cent to an average of US $4411/MT.

Butter lifted 4.9 per cent to an average of US$4821/MT, while anhydrous milk fat gained 4.7 per cent to an average of US$4981/MT.

22,713 MT of product was purchased by 105 successful bidders.

On April 3, Fonterra lowered its forecast farmgate milk price for the 2022/23 season from a range of $8.20 - $8.80 per kilogram of milk solids (kgMS) and a midpoint of $8.50, to a new range of $8.00 to $8.60 kgMS and a midpoint of $8.30.

Its forecast 2022/23 normalised earnings guidance is in a range of 55 to 75 cents.